Apple Acquired Intel’s Smartphone Modem

Apple has made headlines again but it is not for that prolonged legal battle with Samsung or a foldable version of iPhone! The Cupertino based tech behemoth has acquired the majority of Intel’s modem business.

While the details of the deal are yet to be made clear, it is possibly the phone makers part of plans to grab a part of fast-growing 5G spectrums.

Brighter prospects of a 5G iPhone and more

For quite some time, online rumor sites and Apple leak sites have been abuzz with speculations of a 5G iPhone. The latest move indicates the rumors, after all, can be true. The $1 billion deal, according to the industry experts is a hint of Apple’s future moves. The company may consider making all of its Smartphone chips without depending on third party brands. This may lead to the creation of a 5G iPhone powered by Apple’s own modem, CPU and other parts!

Rivals like LG, Motorola, and Samsung have already announced their premium 5G phone models and certainly, Apple does not want to be left behind the race.

What’s the deal like?

As per the deal, Apple will get almost 2200 Intel employees along with equipment, leases and intellectual property. Along with its existing portfolio, Apple will possess 17,000 wireless technology patents. This will definitely give it the required power to emerge as a potent contender in the emerging 5G technology leaders.

Intel is giving away the mobile modems stake but the company will still retain the patents for using 5G to devices like home appliances, laptops, and self-driving vehicles. As it is, 5G tech will not only be limited to mobile devices.

What do the companies say on the deal?

Bob Swan, the Intel CEO said on the deal that owing to the agreement Intel will be able to focus on developing advanced 5G technology while being the owner of critical intellectual property.  Swan added that Apple is the right place for the talented team of Intel.

The senior VP of Apple’s Hardware Technologies, Johny Srouji said Apple is no stranger to Intel and the latter’s hardware and chips have been used in Apple products (Macbooks) for quite some time. He added, Apple is happy to have received a bunch of talented engineers from Intel and their inclusion will help the company to develop innovative and category redefining products in the future.

So, how much Apple will cash on the deal?

Apple will not let rivals like Samsung and Chinese players like Oppo or Oneplus walk away with the pie of 5G sector so easily! The first version of Apple’s 5G iPhone was said to be launched with a Qualcomm modem inside. The company was earlier mired in a legal battle with the mobile chipmaker. Intel did supply modems for iPhone to Apple in 2018 but the 5G chipset was not ready.

Qualcomm was offering the rival Android makers its 5G modem. Now that the Qualcomm case is settled, the first-gen 5G iPhone may still have their chips inside. Things will change in 2020 after this Intel deal is wrapped up. The Intel and Apple deal may bring both companies benefits- feel a section of experts. Intel will be able to shed a business it was almost struggling with and focus on other areas. Apple, on the other hand, will get the expertise and get more negotiation power while dealing with Qualcomm.

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